Question

which of the following are true about gross income and net income?
gross income is the total amount earned after deductions
net income is the total amount earned before deductions
they are the same thing
gross income is the total amount earned before deductions

Explanation:

To determine the correct statement about gross and net income, we recall their definitions:

• Gross income is the total earnings before any deductions (like taxes, benefits, etc.).
• Net income is the total earnings after these deductions (it's what you "take home").

Now let's analyze each option:

1. "Gross income is the total amount earned AFTER deductions" – Incorrect. Gross is before deductions.
2. "Net income is the total amount earned BEFORE deductions" – Incorrect. Net is after deductions.
3. "They are the same thing" – Incorrect. Gross and net income differ because of deductions.
4. "Gross income is the total amount earned BEFORE deductions" – Correct. This matches the definition of gross income.

Answer:

The correct option is the one stating "Gross income is the total amount earned BEFORE deductions" (the fourth option in the list, based on the visible text in the image).